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The costs of the material are only a part of the full costs of such a device (not to mention the excessive advertising on launch here in europe). Sony is loosing money with Vita and with PS3.

Sony should choose the radical and honest way and ditch the dying Vita (it has lower sales than the Wii a dying console, it has lower sales than almost every handheld before!) and concentrate on PS4. But for now it seems they want to let the Vita die slowly, because they are to gutless to tell the truth.